20-1 LL Europe: The Cold War and After The Cold War divided Europe into 2 alliances. Communist nations in Eastern Europe (Warsaw Pact). ○ Led by the Soviet Union. Western Democracies (NATO). ○ Led by the United States of America. The Berlin Wall Many Germans unhappy with communism traveled to west Berlin, so Germans built a wall to stop this. Split Berlin in 2 (West-democratic)(East-communist). This was an embarrassment for the Soviet Union. ○ Showed that people had to be forcibly stopped from fleeing. Europe: The Cold War and After The Nuclear Threat Cold War triggered an arms-race, both sides producing huge arsenals of nuclear weapons. Both sides spent a very large amount of money on weapons. Disarmament and Détente To reduce the threat of nuclear war, both sides met at disarmament talks. 1970s, America and the Soviet Union promoted an era of détente (relaxation of tension). ○ It ended after the Soviets invaded Afghanistan in 1979. Europe: The Cold war and After End of the Cold War By 1990, economic and foreign policy trouble threatened the Soviet Union. Many communist governments collapsed, even in the Soviet Union. The war ended and Western and Eastern Europe sought normal relations. The Warsaw Pact dissolved an NATO had to redefine itself. Troublesome Issues Russia and Eastern European nations turned to the West. ○ For loans and investments to build capitalist economies. Ethnic clashes created conflict. Still nuclear threat. Europe: The Cold War and After NATO’s New Role Former Eastern European communist nations joined NATO. 1990s, the Balkans posed new challenges to NATO. Bosnia and Kosovo tried to break away from Yugoslavia. ○ War erupted, the worst one since WWII. NATO members finally sent military forces to the 2 countries to try and bring order to the area. This sparked debate on whether NATO should become Europe’s peacekeeper and protector of human rights. Economic and Political Trends In 1950s, Western Europeans recovered quickly from WWII. With the Marshall Plan aid, their economies boomed. They rebuilt industries, farms and transportation networks. The Welfare State Leftist parties wanted to extend welfare state. Middle class and poor enjoyed increasing benefits. ○ National health care, unemployment insurance, and old-age pensions. Socialists supported this and a larger role for the government in the economy. Conservatives condemned the drift from the free enterprise system toward socialism. Economic and Political Trends The Oil Shock 1973, West suffered an economic shock. ○ OPEC cut oil production and raised prices. Higher prices led to inflation and slowed economic growth. 1979, OPEC raised prices again causing a severe recession. Economic Shifts Most manufactured goods came from the West. After WWII, Japan, China and India’s industrial economy boomed. In the West many factories changed due to competition. ○ This resulted in more service industry jobs being created. Toward European Unity Six European countries set up the “European Coal and Steel Community. This started economic growth across Western Europe. The Common Market Same six countries formed the European Community. ○ Later a couple other countries joined. ○ Tried to expand free trade. European Union 1980s and 1990s, the Common Market expanded further and took the name European Union. ○ Promoted regional prosperity, peace, and security. ○ Pushed for greater economic and political unity. ○ Replaced national passports with EU passports & ended most tariffs. ○ Put in place the Euro currency for the member nations. Social Trends 1945, the class lines in Europe blurred. More and more belonged to the middle class. Wages went up for the working class. ○ Provided more opportunists. Ethnic Diversity Many immigrants settled in Europe. ○ Provided low-wage labor, caused the economy to boom. Many went to Western Europe to find work. Women 1940s, women in the West made much progress toward legal and economic equality. More worked outside the home, but for less money than men. They slowly narrowed the gap in hiring, promotion, and pay. Social Trends Family life in the West changed. Began having fewer children. Children stayed in school longer. Divorce rates went up. More children born to unwed parents. ○ Single parent families found themselves living in poverty. Vocabulary Berlin Wall: split Berlin into the democratic West and the communist East. It was a huge wall barrier built by Germany. Nuclear Test Ban Treaty: banned the testing of nuclear weapons in the atmosphere. NATO: alliance of western democracies led by the U.S.A. Later it expanded and other nations joined. Common Market: group of nations under a treaty; trying to expand free trade. European Union: the Common Market expanded. Détente: relaxation of tensions. Welfare State: keeps most features of a capitalist economy but takes greater responsibility for social and economic needs. Recession: business is slowed and unemployment rates rise. Service Industry: provides a service rather than a product. Euro: a single currency used among member nations of the EU.